Are you a Company Director struggling with personal debts? If so an IVA might be an ideal solution for you.
- Can you start an IVA if you are a Company Director?
- The effect on your company bank account
Can you start an IVA if you are a Company Director?
An IVA can be an ideal personal debt solution for a company director. If you start this type of agreement it does not affect your ability to remain in your job. You can continue to manage your Company as a director.
No one is likely to find out about your situation unless you choose to tell them. As such the relationship you have with any fellow directors and business collegues should not be affected.
If you have tax debts which you are personally liable for these can be included. In addition you can add any company debts you are personally liable for if you have given a guarantee.
If you are working in a larger organisation you should check the terms of your Director’s contract before starting an IVA. It may require you to inform the board if you become insolvent.
The effect on your Company Bank Account
If you are an owner director you will need to consider the effect of starting an IVA on your company bank account. Where your company and personal accounts are held at different banks there should be no problem.
However if both accounts are with the same bank the Arrangement could affect your company banking facilities. If you have personal debts with the bank these will normally be included. The bank will then discover you have financial difficulties.
The bank cannot close your company account. However they may reduce or withdraw company credit facilities even if payments are up to date. The rational is that if you have personal financial difficulties your company may also be at financial risk.
If you are a director of a larger company or PLC starting an IVA will not have any affect on the company bank account. The above only applies for owner directors.